Interim report January - June 2014

APRIL-JUNE 2014 QUARTER

  • Rental income amounted to MSEK 386 (399)
  • Profit from property management amounted to MSEK 333 (113), corresponding to SEK 5.1 per share (4.5)
  • Profit after tax amounted to MSEK 333 (152), corresponding to SEK 5.1 per share (6.1)
  • Cash flow from operating activities amounted to MSEK 67 (26), corresponding to SEK 1.0 per share (1.0)

INTERIM PERIOD JANUARY - JUNE 2014

  • Rental income amounted to MSEK 781 (789)
  • Profit from property management amounted to MSEK 399 (172), corresponding to SEK 8.0 per share (6.9)
  • Profit after tax amounted to MSEK 345 (72), corresponding to SEK 7.0 per share (2.9)
  • Recognized property value totaling SEK 17.3 billion (16.0) includes 195 (201) directly owned properties.
  • The net asset value (EPRA NAV) per share amounted to SEK 110.2 (110.4).
  • Cash flow from operating activities amounted to MSEK 134 (78), corresponding to SEK 2.7 per share (3.1)

SIGNIFICANT EVENTS DURING AND AFTER THE PERIOD

  • The over-allotment option described in the listing prospectus was fully exercised, which further increased equity by a total of MSEK 395. In the ownership distribution, Hemfosa received a total of MSEK 809 after issue costs
  • On April 30, 2014, Hemfosa issued bond loans totaling MSEK 1,200, which were listed on the NASDAQ OMX Stockholm on June 12, 2014
  • Two properties in Kristianstad were acquired and two were divested in Partille and Gothenburg as part of a combination transaction totaling MSEK 180
  • Public and office properties in Sundsvall, with tenants including Mid Sweden University and Nordea, were acquired at a total value of MSEK 664
  • The total derivative portfolio was restructured, which resulted in MSEK -55 in realized changes in value. At the same time, the average interest rate fell from 4.28 percent to 3.28 percent
  • After the end of the period, Hemfosa’s joint venture, Söderport Fastigheter, divested a housing project in Stockholm for MSEK 355

Comments from the CEO

Well-prepared for growth
Hemfosa reports stable profit from property management for the second quarter and improved earnings capacity. Moreover, we have made some interesting transactions and taken several steps to expand the conditions for growth. I am satisfied with these results, despite relatively few transactions.

During the quarter we secured financing for the company – the ownership distribution in the spring provided the company with a total of MSEK 809 – and issued bond loans amounting to MSEK 1,200. This provides us with an even more favorable financial situation and a solid basis for the continued expansion of Hemfosa.

We carried out a number of transactions, one of which I would particularly like to highlight is the acquisition of public properties in Sundsvall in June with an underlying property value of MSEK 582 and with Mid Sweden University as the largest tenant. This is an acquisition entirely in line with Hemfosa’s strategic ambition of focusing on public properties.

We also continue to strengthen our own organization in order to maintain a high level of quality in working with our existing properties and to conduct new transactions. A new regional manager in Stockholm was employed in the summer.

Although we have long experience from the property market, Hemfosa remains unknown to many people, having been a listed company for only one quarter. We have several thousand shareholders and intend to safeguard our relationship with them. My colleagues and I will meet as many large and small shareholders as we can to talk about Hemfosa’s operations, challenges and opportunities.

In addition to developing our existing property portfolio, Hemfosa’s primary focus is directed to identifying and implementing interesting, and ideally complex, property transactions. The challenge going forward is, as I see it, the increased competition for objects. However, we believe that this is a situation in which Hemfosa’s strengths will be particularly valid. With our expertise, experience and power of implementation, in combination with our access to capital and a broad network, we are well-prepared to be more active in tackling the market with greater force. I foresee an exciting autumn to come for Hemfosa.

 Jens Engwall, CEO

Hemfosa publishes the information in this interim report in accordance with the Securities Market Act on August 20, 2014 at 8.30 am.

Contact information
Hemfosa Properties AB

Tel: +46 8 448 04 80
Street address: Hästholmsvägen 28
Postal address: Box 2020, 131 02 Nacka
www.hemfosa.se

Jens Engwall, CEO
Tel: +46 8 448 04 82, e-mail:
jens.engwall@hemfosa.se

Karin Osslind, CFO
Tel: +46 8 448 04 84, e-mail:
karin.osslind@hemfosa.se

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About Us

Hemfosa is a Swedish property company focusing on community service properties in the Nordic region with its largest tenants being the Swedish state and municipalities. This provides stable cash flows and a healthy yield. In order to create value, Hemfosa also aims to actively participate in the transaction market. As per June 30, 2016, Hemfosa owned properties with a total property value of approximately SEK 33.2 billion, including the company’s share of the property value in joint ventures. Hemfosa’s common share has been listed since March 2014 and its preference share since December 2014, both on Nasdaq Stockholm. Read more at www.hemfosa.se.

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